Abstract -

One of the most critical—and least glamorous—facets of running a clothing company is inventory
management. It is true to claim that inventory control is essential to the success of the apparel industry.
Every kind of raw material, spare part, and finished commodity is kept in the store in a systematic manner.
Controlling your inventory entails accurately calculating and recording all of the different raw materials,
spare parts, and finished commodities that you occasionally store. Because this study focuses on the
application of material planning methods to control material flow to stocks of purchased items, inventory
control in textile mills is required. The EOQ technique, the reorder point method, the ABC Analysis, and the
VED analysis are the five material planning approaches that are explored. A material planning method's
perceived performance is influenced by the application methods used. When it comes to the planning
effectiveness of MRP methods, safety stocks and lead times are particularly critical to determine and assess,
whereas order points, review frequencies, and run-out times are crucial when using reorder point methods. In
this study, all inventories, including those of raw materials, replacement components, and completed goods,
are analyzed in order to improve inventory control methods.
Key Words: Materials needs planning, Reorder point, Performance, Planning environment, Planning
parameters.

Introduction -
The primary goal of the production system is to turn raw materials into usable products through the process
of value addition. Numerous additional resources are used solely to support this activity. When considering
the various components of prime cost attentively, material cost would take precedence over other costs. If a
company has multiple plants, the materials needed for production are often purchased, held in raw material
warehouses, and then transferred to the plants. Even if not, it is still advisable to buy the raw materials in
advance and keep them on hand in order to streamline the manufacturing process. The material department's
functional heads will each work to make sure their specific function runs as efficiently as possible. However,
they should all work toward the same objective of supplying materials for an organization's betterment at the
lowest possible total cost (cost of carrying, cost of ordering, cost of buying, etc.). The largest portion of
current assets for the vast majority of businesses is made up of inventories. Avoiding or minimizing wasteful
investment is the goal of effective inventory management. Inventory is necessary to give a system operating
flexibility. The inventory can be divided into three categories: finished goods, work-in-process, and raw
materials. The raw material inventories terminate the reliance on suppliers for the plants. The inventory of
work-in-progress eliminates interdependence between machines in a product line. Inventory of finished
goods eliminates reliance between the plant and its clients or market.

The following is a summary of inventory's primary purposes:

- Evening out supply-side fluctuations.

- Reducing the cost of production.

- Enabling businesses to manage perishable goods

Objectives of the Study -

- To examine the proportions of various materials in stock.

- To examine how stock materials are categorized.

- To suggest Economic Order Quantity (EOQ) as a means of lowering ordering and inventory carrying costs.

- To offer ideas for potential upgrades.

BENEFITS OF HOLDING INVENTORIES -

The issue of balancing two divergent needs exists in the context of inventory management.

- To maintain sizable inventories of raw materials, work-in-progress, and finished goods for continuous sales
activities as well as efficient and seamless production.
- To minimize inventory investment in order to increase profitability.

A good inventory management programme would:

- Make sure that raw materials are available continuously to enable continual production.

- In times of shortage, keep enough raw materials on hand and be prepared for price adjustments.

- Keep enough finished goods on hand to provide effective client service.

- Reduce carrying expenses and time.

- Maintain an optimal level of inventory investment control.

- Make it possible for management to compare costs and consumption across operations and time periods.

- By giving a way to allocate material costs of goods and departments for comparison with other accounts,
facilitate cost accounting tasks.

- encourage cost savings in purchases.

- serve as a tool for locating and disposing of inactive and outdated store goods.

- Refrain from understocking or overstocking your inventory.

- As needed by operational and sales operations, keep inventory investment at the best level.

- facilitate the provision of data for inventory control and short- and long-term planning.

- Reduce losses due to degradation, theft, waste, and damage.

- Maintain ongoing inventory management to make sure that the materials listed in stock ledgers are truly
present in the stores.

Scope of the Study -

Inventory is literally "money" held in the storeroom, and inventory management is a technique for keeping
the quantity of inventory at a targeted level while keeping in mind an organization's best financial interests.
As a result, sound financial management includes good inventory management. The researcher attempted to
determine the effectiveness of inventory control, the number of days required for stock clearance, and also
suggested the planning of material requirements. The forecasting of inventory consumption and weighted
average price as well as the analysis of the stock value at the end of the fiscal year had been completed. This
study will assist the company in avoiding future shortages, buying materials in advance and at the best price,
and increasing inventories in accordance with EOQ. Effective inventory management guarantees the
utilization of labor and equipment, allowing the sector to improve its reputation and client relationships.

LIMITATION OF THE STUDY -

Due to a lack of secondary data, only a few inventory control approaches, including Ratio analysis, ABC
analysis, EOQ analysis, and VED analysis, were examined.

REVIEW OF LITERATURE -
A comprehensive assessment of the literature is crucial for any research project. Such an effort will
demonstrate prior attempts and offer a good understanding of related topics. A study of previous literature
has been made. One of the prominent studies is listed below:

The cycle counting approach is crucial for evaluating the current level, achieving a given degree of accuracy,
as well as enhancing accuracy, according to Lakshminarasimha's study from 2005, "Improving Inventory
Level Accuracy in the Apparel Industry via Cycle Counting."

The cycle counting approach entails categorizing the items as fast or slow moving and, for each individual
SKU (Stock Keeping Unit), reconciling with both the system and bin stock at intervals of three times, twice,
and once a year.
There are three stages to the cycle counting process: problem identification, 80/20, and implementation. The
study also shows that cycle timings must be modified to account for changes in the integrity of the inventory
system in order to attain the desired accuracy.

According to the research done by Mahendra Pratap and Harwinder Singh (2007) on the topic of "Evaluation
and Economic Selection of Raw Materials "Inventory Control Policy," it is important for all organisations to
maintain a proper inventory of raw materials. Additionally, using the suggested method, the cost of material
shortages is eliminated by adding buffer stock.

According to this proposed model, the overall inventory cost chosen based on economic considerations is
lower than that of the current system.

Inventory data for raw materials was gathered for the study, and a stochastic analytical inventory model was
used to select inventory management parameters economically and eliminate raw material shortages.

The study by Gupta and Hira (2000), titled "Applicability of Forecasting Determination of Factors of
Inventory Control," demonstrates that when demand and lead time are stochastic variables, the values of
these variables can be determined using the exponential smoothing method.

The study looks at how much and when to order.

Research Methodology
For 45 days, the investigation was restricted to the cement factories.A methodical approach to learning is
research. It is also known as the pursuit of knowledge.

Data Collection
Every research process includes the way of collecting data; the data gathered during the research process
were based on primary and secondary data.

The information used for the study is secondary data, which was gathered from books by well-known authors
as well as from periodicals, periodical pamphlets, computer databases, profit and loss accounts, and various
inventory records kept by the finance, buying, and store departments.

ANALYSIS AND INTERPRETATION

Analysis

By organizing the data and fusing it with already-existing knowledge, analysis seeks to determine its
implications. Information can only be extracted from data through analysis. Analysis is arranging the data in
a particular way, whereas interpretation is what clarifies the facts and numbers.

Interpretation

The process of connecting different aspects with additional information is called interpretation. It highlights
the connection between the findings and the research question and initial hypothesis.